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Transcript of Set Go Managment
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Ready, Get Set...Change!The Impact of Change on WorkforceProductivity and Engagement
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Table of Contents
A Wo o h Ps 02
Abo hs s 03
oW & sA 04
Ready, Get SetChange! 04
s 08
Imperatives for Change Management 08
Creating Change That Works for Your Organization 14
Moving to the Next Level: Agile and Ready 21
oso 22
obos 23
Abo h AA 24
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A Word From the PresidentEconomic change is driving an increasing need for organizations
to adapt quickly and adeptly to dynamic market conditions. How
companies and their leaders manage change and engage their
workforce in the process can significantly impact their ability to
achieve strategic business objectives.
Right Management conducted research examining the relationship
between effective change management and engagement,
revealing key drivers and behaviors impacting success. When
planning for organizational change from mergers or acquisitions,
restructurings or shifts in business strategy our research findings
and recommendations will help you to address the strategies and
positive business outcomes needed to bring focus and ensure your
organizations capability to function effectively.
As a leader of workforce management strategy in your company,
we hope this research provides valuable information that will help
you to create sustainable competitive advantage through enhanced
workforce performance.
My colleagues and I look forward to continuing to provide you with
research, insights and fresh perspectives to ensure you have the
information, resources and solutions needed to effectively align your
business strategy with your talent strategy.
J.
President & Chief Operating Officer
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LEADING ORGANIZATIONAL CHANGE 3
About This StudyTo arrive at a clearer understanding of engagement drivers, Right
Management conducted a global study of engagement among
28,810 employees from 10 major industry sectors in 15 countries.
Seeking to determine the factors most closely associated with driving employee
engagement, participants were asked to complete a survey instrument of 100 items,
grouped into three themes. Respondents self-reported on attitudes, performance andconditions directly related to the effectiveness of their organization. Responses were then
assessed against their self-reported levels of engagement across eight factors measuring
commitment, satisfaction, pride, and advocacy. The results provide valuable insights into
the correlation between engagement and key factors playing a critical role in effectively
implementing and executing change. Data was collected from November 2008 to January
2009. Most respondents (91%) were from private corporations employing 50 or more
people, with revenues ranging from under $1 million to over $1 billion. The study used a
stratified sample of employees that matched the workforce population in each country on
several factors, including industry, size of organization, gender, and age.
os
Australia, Brazil, Canada, China, Denmark, France, Germany, India, Japan, New Zealand, Norway, South Korea, Sweden,
United Kingdom and the United States
NORTH AMERICA
SOUTH AMERICA
MIDDLE EAST
AND AFRICA
EUROPE
JAPAN
ASIA-PACIFIC
ss
Agriculture, forestry and fishing; Mining and quarrying; Manufacturing; Electricity, gas and water supply; Construction;
Wholesales and retail trade; Restaurants and hotels; Transportation, storage and communication; Finance, insurance,
real estates and business services; Government, social and personal services.
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LEADING ORGANIZATIONAL CHANGE4
Our research serves to demystify the change process and highlight key drivers that senior
leaders can use effectively to improve change management initiatives and results.
Our research helps organizations transform the complexity and confusion surrounding
change management into a highly informed, integrated improvement process that is no
longer out of reach.
Most organizations are working in dynamic environments and experiencing change in many
forms, such as the execution of a new business strategy, restructurings, introduction of new
policies, acquisitions, mergers, relocations or the implementation of new technology. In order
to optimize organizational performance, companies must be adept at planning, implementingand managing change on an ongoing basis not just as an atypical event.
Although vital to organizational success, companies seldom plan, implement and execute
effective change management processes as part of their workforce management strategy.
Failure to do so can severely impair a companys performance and its very ability to compete.
The dynamics of change, while complex, are not impossible to understand. To help
organizations become more effective at managing change, Right Management examined the
Overview & executive Summary
Ready, Get SetChange!
Organizations have long viewed effective change management as
a complex and mysterious process that can never be understood or
managed effectively. Right Management conducted comprehensive
global research that clearly reveals the relationships that exist
between change, engagement, leadership, productivity and
strategic alignment.
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LEADING ORGANIZATIONAL CHANGE 5
relationship between change management, organizational performance and engagement, as
well as the drivers of successful change strategies in an ambitious global study of more than
28,000 employees in 10 major industry sectors in 15 countries across the globe.
What do we already know? Previous research has shown employee engagement is directly
correlated to key business metrics. A key driver of organizational effectiveness, employee
engagement is a critical measure of person-organization alignment, which is expressed as
satisfaction, commitment, pride and advocacy.
But how does change management correlate to engagement? We found that globally, 34% ofemployees reported being fully engaged, and of those employees, 76% responded favorably
when asked to report on their organizations performance in key areas impacting change
management. From this, we are able to see a strong relationship between engagement and
change management. However, of the 66% of employees who reported being disengaged,
only 33% reported favorably on their organizations ability to manage change. Clearly, there
is significant need and opportunity to assess current change management strategies, not
only to improve engagement, but to ensure change initiatives are successful.
Research has found that companies reporting high engagement levels achieve
significantly better results, including29% ; they are also50% kto have above-average customer loyalty and are 44% kto turn aboveaverage profits1. Research has also shown that highly engaged workgroups are 50% p 33% pf. Their retention rates are 44% and 56%2. Clearly, engagement matters.
1 Izzo, John B. & Withers, P. Values Shift: The New Work Ethic & What it Means for Business. Prentice Hall Canada, 200 0.
2 Weir, J. HR.com. 2003. Repor ting findings of First, Break All the Rules, by Marcus Buckingham and Cur t Coffman andNow, Discover Your Strengths, by Marcus Buckingham and Donald Clif ton.
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LEADING ORGANIZATIONAL CHANGE6
While our study looked at many drivers of effective change management, certain workplacepractices had greater impact on change effectiveness than others. The top global drivers include:
1. Senior leaders implement effective change
2. Safe and healthy workplace
3. Efficient work processes and people systems
4. Fit-for-purpose structure
5. Open and honest communication
6. Employees empowered to make changes to the way things are done
7. Teamwork between business units/departments
8. Resources to do the job well
9. Line managers have appropriate skills
Our research showed that these important drivers for effective change management are not
being executed well. Global results revealed that less than one in two employees work in
organizations where senior leaders are perceived to implement change effectively
and only one in three people believe that the reasons for decisions are fully explained.
The change management methodology needs to take into account different roles and
capabilities at all levels of the organization senior leaders, line managers and staff as
well as people systems and processes, structure, culture, customer focus and strategy. In
addition, organizations need to determine ways to measure success, pinpoint goals and
periodically assess whether or not they are on track.
Effective implementation means careful planning, communication and facilitation of change
the responsibility of senior leaders. But leaders also need to involve their workforce in change,
not just impose it. People are not always prepared to successfully cope with change, thwarting
the organizations ability to meet objectives. Change is often perceived as threatening and can
be distracting and disruptive to your organizations ability to operate efficiently.
How can an organization effectively address the challenges change brings? By understanding
and addressing behaviors that create obstacles, an agile organization can be trained to handle
change, not only as a one-time event, but also on an on-going basis. In fact, effective change
management should be part of a larger strategic workforce management approach focusing
on improving overall performance to drive desired business results.
Change managed well will ensure your workforce is engaged and able to adapt to new
strategies, structures, processes and systems, while maintaining business continuity
ensuring the organizations ability to function effectively, perform at a higher level and position
itself for growth.
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LEADING ORGANIZATIONAL CHANGE 7
As s
bsss hA:
How do we retain key talent and keep them engaged during
a period of constant change?
soo:
A leading global communications provider, was facing declining employee engagement and retention
of key talent. The business was going through constant changes as it adapted its offerings to the
changing economy and, as a result, continuously altered employee responsibilities. Employees were
confused, not knowing or understanding organizational goals and their role in achieving them, and
were discouraged by mostly horizontal career paths rather than vertical growth.
The company engaged Right Management to implement a change management program designed to
increase the agility of both staff and leadership and improve their effectiveness in navigating change.
The end goal was to improve morale and engagement, decrease unwanted turnover and minimize
disruption to productivity during change. A core component of the program was to equip leaders to be
better prepared to lead their teams through change and enhance their overall leadership capacity.
The client selected pilot sessions to be conducted in the United States, United Kingdom, Brazil and
Singapore. Individual employees participated in Change Assessment pre-work followed by a four-hour
Navigating Change workshop. Leaders and managers also completed pre-work in advance of their
six-hour Leading through Change workshop. The sessions have subsequently been implemented
in 14 languages across all geographies. Early feedback from the client has been very positive. The
Change Assessment pre-work was deemed critical to informing leaders on the relative state of the
change process for each of the key participant groups. The organization is also experiencing a positive
impact with employees at all levels being more adaptable to change.
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LEADING ORGANIZATIONAL CHANGE8
At the same time, we found that many companies fall short when it comes to change
management, failing to set realistic and measurable goals, not defining where they want to
go or knowing when they get there, and poor understanding of who will be impacted andhow they will respond. Specifically, we found:
h bs Po oAzAos AA hA A o s o .
A strong relationship exists between financial performance and effective change manage-
ment. In top-performing companies (those with or defined as achieving higher revenue,
above-average customer loyalty and above-average profits), 60% of employees responded
that change is handled effectively in my organization compared to 16% of employees in
below-average performers.
boo :
Organizations that effectively plan for and communicate change, while allowing their people
to become actively involved in the change process, are taking positive action to ensure their
workforce is adequately prepared and positioned to perform at higher levels.
1: Relationship Between Change Management and Organizational Performance
Key FindingS
Imperatives for Change Management
Our study demonstrated that effective change management is
correlated to several key metrics, such as employee engagement
and retention critical to organizational performance.
hA s hA oAzAo b oAzAo PoA
One of the best performingorganizations in its sector(s)
Above averageperformer
Averageperformer
Below averageperformer Favorable
0% 20% 40% 60% 80% 100%
60%
51%
34%
16%
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
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LEADING ORGANIZATIONAL CHANGE 9
ss hA hA o Pos A o h oAzAos hA Poss.
Only 43% of employees globally agreed or strongly agreed the organization was able to
handle change effectively. Dramatic differences exist among countries regarding employees
confidence in the organizations ability to handle change. For example, in India, two out of
three respondents are confident in their organizations ability to handle change. However, in
Japan, three out of four employees did not believe change was handled effectively. On average,
globally, at least one in three believe their organization does not handle change effectively.
This is most pronounced in Sweden, Japan, United Kingdom, France and South Korea.
boo :
Ineffective communication and a lack of understanding for the rationale prompting the
change can impact confidence. Leaders have a clear responsibility to effectively articulate
reasons for change and the organizations plan to implement the change.
2: Change is Handled Effectively in My Organization (by Country)
hA s hA oAzAo b o
INDIA
NEW ZEALAND
US
BRAZIL
CHINA
AUSTRALIA
CANADA
UK
DENMARK
GERMANY
NORWAY
FRANCE
SWEDEN
SOUTH KOREA
JAPAN
0% 25% 50% 75% 100%
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
63%
50%
49%
48%
47%
47%
46%
43%
43%
42%
41%
34%
32%
31%
24%
28%
31%
32%
34%
38%
33%
33%
34%
37%
40%
38%
38%
36%
45%
49%
9%
19%
19%
17%
16%
20%
21%
23%
19%
18%
21%
27%
32%
24%
27%
Strongly agree/
Agree
Partly agree &
Partly disagree
Disagree/
Strongly disagree
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LEADING ORGANIZATIONAL CHANGE10
hA AA
CHANGE MANAGEMENT
I am encouraged to come up withnew and better ways of doing things
Senior leaders ensure thatprojects are completed
My immediate manager has the skillsto manage change effectively
My immediate manager keeps me informedabout changes happening in my organization
My immediate manager actson my ideas and suggestions
Senior leaders respond appropriatelyto changing external conditions
People can make appropriate changes to theway things are done in my organization
Senior leaders communicate effectivelyabout changes in my organization
Change is handled effectivelyin my organization
Senior leaders implement changeeffectively in my organization
People in my organizationdo what they say they will do
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
As o oP bhAos ssA o AA hA .
More than half of employees did not believe that senior leaders effectively implementedchange or that change was handled effectively in their organization. The biggest downfall
for senior leaders is the perception that they do not follow through on what they say they
will do. Less than half (47%) agreed that senior leaders communicated change effectively.
Additionally, 54% of employees doubted senior leaders ability to respond appropriately to
changing external conditions. In some countries the responses were even less favorable.
Only 35% of respondents in Norway and 30% of those in France felt that senior leaders
implement change effectively in my organization.
Keeping employees informed about what is happening in the organization is also an
important behavior but only half of employees surveyed agreed that it was done well.
In Australia and New Zealand, slightly more, 54%, reported favorably, but only 41% in Asia
Pacific could report the same. Leaders also need to recognize the need to give employees avoice in the change process, rather than dictate changes. Less than half, only 45%, felt they
had an opportunity to make changes.
boo :
To achieve success, leaders want to ensure messages are communicated openly and
honestly, keep employees informed, solicit feedback from those impacted by the change,
and commit to meeting expectations set by leadership. Ultimately, the responsibility for
managing change is with senior leaders and managers. Failing to address these behaviors
will derail the companys workforce and, ultimately, its ability to perform.
3: Drivers of Effective Change Management
0% 25% 50% 75% 100%
48%
60%
55%
50%
50%
49%
46%
45%
43%
43%
42%
40%
32%
25%
31%
27%
28%
32%
34%
36%
32%
36%
34%
39%
20%
15%
15%
22%
22%
19%
20%
19%
24%
21%
24%
21%
Strongly agree/
Agree
Partly agree &
Partly disagree
Disagree/
Strongly disagree
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LEADING ORGANIZATIONAL CHANGE 11
hA AA s o Po A A bsss s.
Our findings revealed that an organizations ability to effectively execute change correlates tothe organizations ability to retain talent and attract new talent as well. In addition, job
confidence is negatively impacted by poor change management. Specifically, we found:
The effectiveness of change implementation directly corresponds to employee engagement.
Where employees reported that change was not handled well in their organizations they were
overwhelmingly likely to be disengaged (94%). But where employees reported that leadership
managed change effectively, 40% were not engaged and 60% were engaged.
boo :
How do you define effective? Leaders will most likely be viewed as effective when
demonstrating important leadership behaviors, such as communicating with employees,
engaging them in meaningful discussions about the change and how they will be impacted,and asking employees for input on decisions that will impact them.
4: Change Is Managed Effectively in My Organization
Organizations that do not manage change well are four times more likely to lose talent.
Twenty percent of employees who perceived change was not handled effectively indicated they
planned to leave within one year versus only 5% of employees who held a favorable view. Those
with a favorable view reported they planned to stay with the organization for at least five years.Retaining talent is critical to an organizations ability to develop leadership bench strength, plan
for succession, adequately meet workforce skill and capability needs, and grow the business
boo :
By looking for ways to improve morale and enhance leadership capability during change,
organizations can increase retention and minimize disruptions to productivity and engagement.
40%
60%
Engaged
Not Engaged
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
PA o hA o Po A
Change managed well
Change not managed well
0% 20% 40% 60% 80% 100%
94%
6%
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LEADING ORGANIZATIONAL CHANGE12
AoshP bW hA s hA oAzAo
A o o sA
5:Relationship Between Effective Change Management and Intention to Stay
Plan to stay for
under 1 year
Plan to stay for 1 to
less than 5 years
Plan to stay for at
least 5 years
Favorable
Unfavorable
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
0% 25% 50% 75% 100%
Ineffective change management can lead to lower levels of job confidence.
Job confidence levels have a strong correlation to ability to handle change. Our study
asked employees to assess their confidence in not being made redundant within the next
12 months and their confidence in finding a similar job and pay within three months. In
companies where employees reported that change management was not handled well,
45% of employees expressed favorable feelings about job confidence while 32% did not.
This is in stark contrast to organizations with effective change management, where 80%
of respondents had positive feelings about job confidence versus only 7% who did not.Confidence was highest in China (76%) then followed by New Zealand (73%), India (72%),
Germany (71%), Canada (71%) and Norway (71%). The lowest confidence levels were
reported in Japan (53%) and the UK (59%). Confidence in finding a similar job and pay
within three months was highest in India (72%) and China (65%). The lowest confidence was
reported in Japan (24%), France (34%), Sweden (36%) and the UK (40%).
boo :
For organizations that want to improve the job confidence levels of employees, our findings
revealed that when managing change, leaders should ensure there is clarity around reporting
structures, provide a meaningful forum for employees to express their opinions, make certain
employees understand the career opportunities available to them and give employees theautonomy needed to perform their job well.
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LEADING ORGANIZATIONAL CHANGE 13
PA o hA o Job o
PA o hA o A AAo
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
Global Benchmarking Study, December 2008
Base: 28,810 Global Employees
Change
managed well
Change not
managed well
Change
managed well
Change not
managed well
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
32%
45%
80%
7%
Ineffective change management negatively impacts an organizations ability
to attract talent.
When employees reported that change was managed poorly in their organizations, 75% of
respondents had concerns with their companys ability to attract talent, while only 7% did not.
At the same time, just 9% of employees who viewed change management as effective felt that
talent attraction was weak versus 67% who responded favorably.
boo :
Ineffective change management can result in decreased employee trust in the organizationsstated values and the employment brand. This decline in trust will ultimately affect how the
organization is viewed externally, impairing its ability to attract the new leaders and skilled
talent needed to grow the business.
7:Impact of Change on Talent Attraction
Favorable
Unfavorable
Favorable
Unfavorable
6:Impact of Change on Job Confidence
75%
7%
9%
67%
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LEADING ORGANIZATIONAL CHANGE14
Once senior leadership provides the vision on what change is needed, the organization must
then set out to develop and execute a change management plan and engage their workforce
in the process. Our recommendations include:
1. s Assss oos o AA Ah Pos hA Ass.
To create a comprehensive change management system, leaders need to conduct anorganizational readiness assessment. One assessment is designed to evaluate structural
issues. Another assessment evaluates the change effectiveness skills and abilities of
employees by analyzing the specific behaviors and characteristics needed to adapt easily
to sometimes difficult changing circumstances such as an ability to remain calm even in
stressful situations and to reach mutually beneficial outcomes during a time of change.
With the right assessment tool, employees at all levels of the organization can develop
an understanding of their strengths and weaknesses in how they respond to change. In
addition, managers can use the results to provide guidance to their team. In particular, when
employees impacted by the change initiative have the opportunity to assess their unique
behaviors and responses to change, the results provide a common language to use in group
discussions. At the organizational level, leaders can employ the information to understand
how the business will react to change.
Creating Change That Works forYour Organization
To ensure that change initiatives are successful, organizations
need to develop a workforce adept at handling change in
whatever form it takes. This undertaking requires not only
understanding and fostering effective behaviors and attitudes, but
also developing a comprehensive organizational process infusingchange agility throughout the company a system ensuring the
right organizational structures are in place and that individuals
have the appropriate capabilities required at each level.
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LEADING ORGANIZATIONAL CHANGE 15
What characteristics tend to pose a challenge? Right Management conducted 5,000 change
readiness assessments designed to assess an employees likely response to change. The
results enabled us to predict several areas of concern, which included low adaptability,
low self assurance and impaired ability to reach agreement. When planning for change,
organizations should consider those characteristics in particular when determining how to
help their employees respond to change.
Assss hA Ass
Right Managements change effectiveness assessment predicts an employees likely response to
change. Based on the results of 5,000 assessments, we looked at the most common responses
to change and grouped results into two categories: Concern and Strength.
ff b
The implication for organizations is that nearly half of all employees will struggle with some aspect of
change which is being tested to extreme measures with the economic uncertainty we are currently
facing creating multiple barriers to impede the success of the change initiative.
The good news is that 48% of respondents fall into the Strength category for Building Relationships.
Collaboration, teamwork and collegiality are critical to achieving goals. Identifying individuals that know
how to interact appropriately with others and build and maintain interpersonal relationships will be an
important part of ensuring success in your change initiative. This is particularly essential for those who
need to lead changes in their organizations.
Ap
sf A
A
b p
f
P
38%
43%
44%
48%
31%
22%
Concern Strength Respondents
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LEADING ORGANIZATIONAL CHANGE16
As s
bsss hA:
How do we sustain productivity during a global reinvention process?
soo:
A global industry leader in office furniture, was preparing for a global reinvention process that involved
transitioning and streamlining all workloads into two main headquarter departments: Logistics/
Transportation and Finance. Eighty percent of employees were transitioned from other work areas to
the newly formed internal departments and a further 20% were redeployed to the newly charted roleswithin their existing departments. The organization wanted to proactively provide change tools for
leaders and employees to maintain productivity, motivation and morale, while also fostering trust and
commitment to their stated values and achieving continued client service excellence.
Right Management was selected as the partner with the best expertise to help achieve these
objectives. Two workshops were implemented: Navigating Change for employees and Leading
through Change for managers. The pre- and post-workshop surveys showed dramatic increases in
change readiness for all levels of staff:
After completing the program, 94% of the Leading through Change participants knew how to lead
their team through changes versus only 35% who thought they were capable before the workshop.
94% of the Navigating Change participants knew how to adapt to change and increase their
personal effectiveness during times of change versus 14% who thought so prior to the workshop.
The client feedback has been overwhelmingly positive. Participants gained a common, consistent
language, greater understanding of the change process, tools and strategies to support them through
the process, and a safe place to come together and share fears and concerns. Right Managements
services assisted the company in demonstrating its core values to treat people with dignity and
respect and promote positive relationships. And most importantly, the end goal of sustaining
productivity during this period of change was achieved.
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LEADING ORGANIZATIONAL CHANGE 17
2. b hA AA APAbs A A oAzAoA s.To become a change-ready, agile company, each organizational level senior leadership,
middle managers and staff needs to learn how to effectively respond to and manage
change. But these segments require different capabilities, depending on their roles and the
amount of control they exert over the process. Specifically:
Senior leaders initiate, guide and champion change, ensuring engagement among
the rest of the organization.
It is up to senior leaders to make sure that their plan takes into account not just the
immediate change but other changes likely to occur in the future. It also involves engaging
the workforce early in the process. To ensure engagement and alignment, senior leaders
benefit from encouraging input from employees, keeping employees informed about the
change process, valuing and acting on ideas, following through on actions and modelingappropriate responses to change. That, in turn, includes equipping line managers with the
right skills such as developing a common, consistent language to talk about the change
needed to help the rest of the organization adapt to and embrace the change.
Middle managers make change happen, but have little control over the direction.
Indeed, middle managers may be in the most difficult position: They must facilitate change
and help their employees understand the reasons and objectives for the change. They
also provide direction and support on ways to respond positively and effectively to the
change that impacts not only staff, but them as well. Additionally, middle managers must
be equipped with the skills and resources needed to help their employees such as how
to better understand typical responses to change, the cycles of change and how to guidepeople through the change.
Employees impacted by change must adapt and grow.
The majority of employees have no control over the change decision. But they need to
continue to meet performance objectives during and after a change event. To that end,
employees may need help creating strategies to overcome natural resistance to change.
Through assessments, workshops and team meetings, organizations can show employees
how to recognize their own styles, anticipate their reactions to change, understand their role
in making change work, set measurable goals and develop a plan of action. Most importantly,
employees need to be treated as more than passive recipients of change they need to
be involved. Ensure that employees understand the need for change why it s important,
their role in the process, what is expected of them and provide a means to contribute and
influence the process.
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LEADING ORGANIZATIONAL CHANGE18
8: Targeted Approach for Effective Change Management
A APPoAh o hA AA
1. oAzAoA hA
A: Those required to drive change
and control decisions associated with change
2. A hoh hA
A: Those required to lead through
change and have no control of change decisions
3. AA hAA: Those impacted by change
and have no control of change decisions
p
3. A o PPos, s A os.
Structure is the game plan for getting work done not just an organization flowchart. It
ensures the right people are doing the right work. Good structure means every employee has
a clear role and set of accountabilities, as well as the authority required to perform. A highly
bureaucratic structure might impede the ability to adapt quickly, as would a siloed business
thats busy competing internally rather than adding value to the change agenda. In addition,employees may not be able to adapt to change if the design of their jobs doesnt permit it or
if they are not given the authority to make the necessary changes to their work needed to
achieve the new company direction or focus. For that reason, organizations need to conduct
a high-level overview of jobs considered to be critical to building agility and re-evaluate job
descriptions, if necessary. Finally, organizations have to examine whether their operating
model and culture are conducive to change agility.
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LEADING ORGANIZATIONAL CHANGE 19
As s
bsss hA:
How can we adapt our culture to embrace changing market needs
and respond at a rapid rate?
soo:
An international financial services group, was perceived in the market as change weary. The CEOs
strategic vision was for change to occur at a rapid rate and to equip the bank to respond quickly
and nimbly to strong external competitive pressures. The risks associated with doing nothing and not
changing the culture and attitudes included a negative impact on employee engagement, retention and
motivation, while also perpetuating the perception that leaders had been ineffective in managing change.
Approximately 2,680 employees have attended the change management workshops provided by Right
Management over a two-year period. Feedback has been extremely positive and many participants have
enjoyed both the theoretical and practical elements of the sessions. The change management solutions
are becoming embedded into the organizations overall change processes and ingrained in its culture.
A core component of Right Managements solution was the development of a Change Report which
is based on the pre-assessments implemented to all staf f. This provided a real differentiator by
sharing objective data for individuals to better understand their behaviors when mapped against Right
Managements proprietary Delta Model, which describes the traits and behaviors conducive to change
management. This enabled them to self-manage more effectively during change. The assessments
have also been used for further team development after the workshops so that teams can gain greater
insight into their own profiles and change readiness.
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LEADING ORGANIZATIONAL CHANGE20
4. P PoP sss A Posss.These are the various systems and processes that organizations utilize to send messages,
share information and make well-informed decisions. These include communication systems,
performance management, recruitment and selection, and remuneration and reward. Effective
change management relies heavily on people systems that work together to create change
agility to implement and embed the change when it occurs. These systems are viewed as
an extension of leadership creating consistency and trust. To create change agility, it
is critical to ensure that performance management, succession management, and talent
attraction and retention systems are effectively working together. In the area of HR processes,
organizations need to ensure they dont have legacy procedures that might inhibit agility,
while compensation and reward systems may provide incentives for the wrong behaviors.
5. As sss.
To determine how effective their efforts have been, organizations need methods for
measuring success. Best practice is to define goals at the outset and the metrics to be used
for assessing whether those objectives have been achieved. Key business metrics will be
unique to the organization. In some companies, for example, productivity may be important;
while in another, customer retention may be essential. Other key metrics might include
employee retention and the absenteeism rate, since a period of change disruption, handled
incorrectly, could cause a higher rate of employee defections and absences. In addition,
organizations can create mechanisms for receiving feedback, such as employee surveys or
focus groups that can be conducted at various points during and after the change.
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LEADING ORGANIZATIONAL CHANGE 21
Moving to the Next Level:Agile and Ready
A successful change management approach
combines proven methodologies, assessments ,
and tools focusing on business performance.
Our solution is designed to equip organizations,
leaders and individuals with the capabilities andagility to work effectively through change to
ensure high levels of engagement, performance
and productivity. To create an agile organizational
culture able to adapt to any change effectively,
our strategy encompasses the entire organization:
executives who drive change and are instrumental
in creating overall strategy, ensuring there is
employee engagement and open communication;
middle management, who make the change work
and help employees more directly; and theemployees within the organization, who are directly
affected, have little or no control over decisions,
but are responsible for implementing change.
Our process includes four phases:
PhAs so
Evaluation of the current climate of change readiness within the organization to determine context against
which the change management program can be delivered.
PhAs A A A As/AAs
Participation in skill development programs and workshops, on-line assessments, action learning activities
geared toward helping leaders understand their response to change and learn methods for successful
communication and execution of change.
PhAs A A A As
Participation in skill development programs and workshops, on-line assessments, and action learning
activities geared toward helping individuals understand their responses to change, barriers to success and
behaviors that are effective.
PhAs AAo A W
Evaluation, measurement and analysis of results to ensure desired progress and business impact are achieved.
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LEADING ORGANIZATIONAL CHANGE22
Change is constant. But more importantly, change is necessary.
While the strategy and objectives behind change initiatives
may differ from one organization to another, all face the same
imperative: Companies must be adept at managing change that
is necessary for growth and survival.
Yet, organizations tend to underestimate the importance of managing change effectively
through the people who architect, execute and realize change initiatives inevitably
undermining their ability to achieve the goals the change initiative was designed to produce.
Effective change management requires identifying and developing behaviors, attitudes and
processes that support change and to do so in a systemic way building change agility into
the organizations fabric. Failure to act can lead to reduced productivity, decreased levels of
trust, declines in engagement scores, increased costs from poor work transitions and new
process implementation, increased attrition and poor talent attraction.
Clearly, the need for successful change management is of crucial importance in todays
competitive and fast-paced environment. Our research highlights the strong correlation
between effective change management and high levels of employee engagement, whichimpacts productivity and performance. Organizations must master the skills needed to
manage change so theyre ready to react quickly as business demands shift . Indeed, the one
constant in life is change and companies able to respond with agility will be better able to
compete in any economy in the global market. Your business depends upon it.
cOncluSiOn
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LEADING ORGANIZATIONAL CHANGE 23
Michael HaidSenior Vice President
s
As a global thought leader for Right Managements
Talent Management practice, Michael drives the
strategy and execution of the organizations Talent
Assessment capabilities worldwide. He supports a
network of Regional Champions and Subject Matter
Experts and leads the design and implementationof global, scalable solutions delivered to meet
critical and emerging business needs. These key
capabilities and associated client solutions focus
on competency modeling and individual, team, and
organizational assessment.
Deborah Schroeder-Saulnier, D.Mgt.Senior Vice President
s
As a global thought leader for Right Managements
Talent Management practice, Deborah drives the
global strategy and execution of the organizationsLeader Development, Organizational Effectiveness
and Employee Engagement capabilities worldwide.
She supports a network of Regional Champions
and Subject Matter Experts and leads the design
and implementation of global, scalable solutions
delivered to meet critical and emerging business
needs. These key capabilities and associated
client solutions focus on the areas of leadership,
succession, performance management, strategy
and strategic workforce align-ment, change
management, wellness and productivity
management, workforce engagement and
retention strategies.
Jamie Sims, BA (Hons), MPsych, MBAManaging Principal
Jamie is a registered psychologist and assessment specialist.
She currently heads Right Managements Talent Assessment
practice in Australia and New Zealand. Since joining Right
Management, Jamie has been involved in a range of national
and global assessment and leadership development
consulting projects. Jamie also provides individual coaching
using an evidence-based approach and Cognitive Behavioraland solution-focused techniques.
Hilda WangData Manager
Hilda Wang is the Data Manager for Right Management in
Australia. She has extensive experience in analyzing data,
data presentation and benchmarking. Hilda has worked with
clients from a range of industries spanning both the private
and public sector, including banking and finance, mining and
resources, hospital and health care, manufacturing, utilities
and instrumentalities, communication and IT.
Mark Urban,Ph.D.Vice President, Talent Management Consultant
As Vice President and Talent Management Consultant
based in the Chicago area, Mark works with clients to identify
their unique drivers of employee engagement and linkages
to operational and financial results. These analyses inform
his work with senior leaders to formulate strategic and
tactical plans which target increasing employee engagement,
and subsequently, business performance. Mark received his
Ph.D. in Industrial/Organizational Psychology from Ohio
State University.
Contributors
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Right Management Inc. 1818 Market Street, 33rd Floor Philadelphia, PA 19103-3614 ..
Product # 6100-4US A MANPOWER COMPANY
Right Management (www.right.com) is the talent and career management
expert within Manpower, the global leader in employment services. Right
Management helps clients win in the changing world of work by designing
and executing workforce solutions that align talent strategy with business
strategy. Our expertise spans Talent Assessment, Leader Development,
Organizational Effectiveness, Employee Engagement, and Workforce
Transition and Outplacement. With 300 offices in over 50 countries, Right
Management partners with companies of all sizes. More than 80% of
Fortune 500 companies are currently working with us to help them grow
talent, reduce costs and accelerate performance.
About Right Management